The pair is still down on the day, but low was in the first hour of trading
With all the risk off sentiment out there (gold up, yields lower, stocks lower) and the Asian Pacific area on higher alert (and in potential crisis mode), you might expect that pairs like the AUDUSD would be under pressure. That it would be in a risk off mode/mood.
Indeed, the pair is still down from Friday’s close, but the pair printed it’s low in the opening hour and moved off that level, rotated back to the lows and is now back higher and near the day’s highs. The 0.66187 to 0.66223 is a gap on the hourly chart at least from Friday. Get above that level and turn positive and there can be more covering “just because”. On the topside, the underside of a broken trend line comes in at 0.6631. Above that and traders will be eyeing the falling 100 hour MA at 0.6640 (and moving lower).
On the downside, fall below the broken trend line at 0.6605 and the natural 0.6600 level, and we should see more downside momentum as traders tilt down again.
SUMMARY: Although the AUDUSD is still lower on the day, it is not in a huge risk off mode/mood. Is it disappointment on the inability to extend lower, or is the dust going to settle and and we see more upside. The answer will be in the price action. Right now traders are testing the next upside target. If the price can get above, we could see more upside probing. If not, we can see a rotation lower and the corrective mood ruined.